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DAC approves proposals worth Rs 70,500cr for Armed Forces & ICG under Indian-IDDM Category

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DAC approves Rs 70,500 crore procurement for armed forcesOn March 16, 2023, the Defence Acquisition Council (DAC) has accorded Acceptance of Necessity (AoN) for capital acquisition of over Rs 70,500 crore under Buy {Indian-IDDM (Indigenously Designed, Developed and Manufactured)} for Armed Forces viz. Indian Navy (IN), Indian Air Force (IAF), Indian Army (IA), and the Indian Coast Guard (ICG).

  • Meeting of DAC held under the chairmanship of Union Minister Rajnath Singh, Ministry of Defence (MoD).

For IN:

Out of the total proposals, IN proposals constitute more than Rs 56,000 crore, which mainly includes indigenous BrahMos missiles, Shakti Electronic Warfare (EW) systems, Utility Helicopters-Maritime etc.

  • BrahMos missile system will enhance the maritime strike capabilities & Anti-Surface Warfare Operation.
  • Utility Helicopters will act as multiplier for operational readiness of IN in Search & Rescue operations, Casualty Evacuation, Humanitarian Assistance Disaster Relief (HADR) etc.
  • Shakti EW systems will equip and modernize the frontline Naval ships to counter Naval Operations by the adversaries.

For IAF:

The DAC accorded the approval to IAF’s proposal for Long Range Stand-Off Weapon (LRSOW) which will be indigenously designed, developed and integrated on SU-30 MKI aircraft.

For IA:

For Artillery modernization, AoN for procurement of 155mm/52 Caliber Advanced Towed Artillery Gun System (ATAGS) along with High Mobility Vehicles (HMVs) and Gun Towing Vehicles (GTVs) for the IA were accorded by the DAC.

  • This will be in addition to the ongoing Dhanush Gun System and K-9 Vajra-T Gun System.

For ICG:

DAC also accorded AoN for procurement of Advanced Light Helicopters (ALH) MK-III from Hindustan Aeronautics Limited (HAL) for ICG.

  • ALH is equipped with surveillance sensors which will enhance the surveillance capabilities, along with full night capability and Instrument Flight Rules (IFR) capability for operations of the ICG.

Key Notes:

i.With the above AoN, the total AoN granted for Capital Acquisition in FY23 is Rs 2,71,538 crores, out of which 98.9% of the procurement will be sourced from Indian industries, thus catering to the goal of ‘Aatmanirbhar Bharat’.

ii.The Buy (Indian-IDDM) has been introduced in Defence Procurement Procedure (DPP) 2016 to promote indigenous design and development of defence equipment. This category has been accorded top most priority for procurement of capital equipment.

Recent Related News:

i.On January 10, 2022, the Defence Acquisition Council (DAC) approved Acceptance of Necessity (AoN) for three capital acquisition – two of the Indian Army (IA) and one of the Indian Navy (IN) – proposals worth Rs 4,276 crore.

ii.In December 2022 too DAC has accorded approval for Acceptance of Necessity (AoN) for 24 Capital Acquisition Proposals. These proposals include six for Indian Army, six for Indian Air Force, 10 for Indian Navy and two for Indian Coast Guard for a total value of Rs 84,328 crore.

About Ministry of Defence (MoD):

Union Minister– Rajnath Singh (Constituency- Lucknow, Uttar Pradesh)
Minister of State– Ajay Bhatt (Constituency- Nainital-Udhamsingh Nagar, Uttarakhand)